Project Report Icici Bank 2011

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CHAPTER ONE INTRODUCTION OF BANKING SECTOR INDIAN BANKING SYSTEM: Indias banking system has several outstanding achievements to its credit, the most striking of which is its reach. An extensive banking network has been established in the last 30 years. Indias banking system is no longer confined to metropolitan cities and large towns. In fact, Indian banks are now spread out into remote corners of the country. In terms of number of branches, Indias banking system is one of the largest, if not the largest in the world today, and an even more significant achievement is the close association of Indias banking system with Indias development efforts. The diversified development of our economy and acceleration of the growth process are in no small measure due to the active role that banks have played in financing economic activities in different sectors. Under the Reserve Bank of India Act, 1934, banks were classified as scheduled banks and non-scheduled banks. The scheduled banks are those, which are entered, in the Second Schedule of RBI Act, 1934. Such banks are those, which have a paid-up capital and reserves of an aggregate value of not less than Rs. 5 lacs and which satisfy RBI that their affairs are carried out in the interest of their depositors. All commercial banks - Indian and Foreign, regional rural banks and state co-operative banks-are Scheduled banks. Non-Scheduled banks are those, which have not been included in the Second Schedule of the RBI Act, 1934. The organized banking system in India can be broadly divided into three categories: (i) Commercial banks, (ii) Regional Rural Banks and (iii) co-operative banks. The Reserve Bank of India is the supreme monetary and banking authority in the country and has the responsibility to control the banking system in the country. It keeps the reserves of all commercial banks and hence is known as the Reserve Bank. Commercial Banks has been in existence for many decades. Commercial banks mobilize savings in urban areas and make them available to large and small industrial and trading units mainly for working capital requirements. After 1969 commercial banks are broadly classified into nationalized or public sector banks and private sector banks.
Nisha Kiran (PGDM) 2010-12 RCMA
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INDUSTRY PROFILE
Banks have become a part and parcel of our life. There was a time when dwellers of cities alone could enjoy their services. Now banks are often accessible to even a common man and their activities extend to areas hitherto untouched. Apart from their traditional business oriented functions, they have now come out to fulfill national responsibilities. Bankers cater to the needs of agriculturists, industrialists and traders and to all sections of the society. Thus they accelerate the growth of the country and steer the wheels of the economy towards its goal of self-reliance in all fields. It naturally arouses our interest in knowing more about the banks and the various activities connected with them.
The banking system occupies an important role in a nations economy. A banking system is indispensable. In a modern society, it plays a pivotal role in economic development of a country and forms the core of the money markets in an advanced economy.
Progress of Banking in India since 1969: The period since bank nationalization is of great importance from the point of view of banking development as the size and the reach of the banking system have registered spectacular progress in this period. Aggregate bank deposits constituting about two-fifths of financial assets of the household sector have risen from 15% of GDP to around 39.3%, and the total number of branches from 8,262 to 65,931. Of these, around 49.5% are now in rural areas as against less than 22.5% at the time of nationalization of major banks in 1969. Opening of rural branches has improved mobilization of savings in the rural sector. Presently rural deposits accounted for 15% of total deposits. Since, bank nationalization in this country, priority sector credit has increased from about 14% of total bank credit to around 30%. Over the years development of banking has been faster in relatively less developed region of the country, and as a result regional disparities have declined and the concentration of banking business is now less.
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The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in a significant growth in the geographical coverage of banks. The growth of Indian banking after nationalization, both in terms of sectoral coverage as well as geographical expansion, has been unparallel in the world. Yet, this growth has not been without a cost and certain weaknesses have emerged. The banking industry finds itself at the cross-roads. Against the background of the current thinking in the country and reforms in other sectors, it was felt that a detailed study was necessary to examine the question of privatization and liberalization as solutions to the present problems of banks and suggest steps to be initiated.
CURRENT SCENARIO: The Indian Banking industry has been undergoing rapid changes reflecting a number of underlying changes. Liberalization and deregulation witnessed in the Indian markets in the 1990s have resulted in a spurt in banking activity in India. Significant advances in communication have enabled banks to expand their reach, both in terms of geography covered as well as new products introduced. With increased competition in wholesale banking due to the entry of foreign banks and new private sector banks, the sector has witnessed a squeeze in margins. This has led to banks increasing their focus on retail banking so as to obtain access to low cost funds and to expand into relatively untapped, potential growth areas. Banks and financial institutions are thus continuously exploring new avenues for increasing their footprint and safeguarding their margins. Competition from multinational banks and entry of new private sector banks has rewritten the rules of the retail lending business in India. Slow growth in corporate lending, pressure on corporate spreads due to competition and concerns over asset quality have induced public sector banks to follow the private sector banks in placing emphasis on growth through expansion of retail portfolio. The Indian retail lending market is relatively unexplored with the per-capita usage of retail product offerings such as housing finance, credit cards, auto loans, consumer finance, etc. lower as compared to Asian peers. Also the relative size of the Indian market, backed by factors such as a growing population of bankable households, low penetration rate for retail finance products and the increased propensity of the urban populace to take credit, offers scope for expansion. In retail financing most of the players are trying to enter or consolidate their housing finance segment, as housing loans market is perhaps the least risky segment in the financial sector.
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Personal finance companies generally target the retail borrower where the nature of the loan ensures that defaults are few and far between. The relatively small size of a personal loan also ensures the risk is well spread out. Moreover pursuance to the government's policy to provide shelter to a large number of people and concessions provided in the Finance Act to boost housing and housing finance activities indicates great future potential for this segment. While nationalized banks struggle with their baggage from our socialist past, winds of change are sweeping other segments. Modern day banks are not mere suppliers of money. They have become providers of a wide range of services. Provided the government rectifies its policies, banks can provide a host of services such as selling insurance, mutual funds and investment opportunities, as in other countries. More dramatic are the developments in technology. Today, traditional business models are being challenged. Customers can do all their banking transactions while sitting at home. Banks are introducing Automated Teller Machine (ATM) cards and, lately, debit cards as well. This promises to change the face of banking forever. The industry is currently in a transition phase. On the one hand, the KMBs, which are the mainstay of the Indian Banking system, are in the process of shedding their flab in terms of excessive manpower, excessive non Performing Assets (NPAs) and excessive governmental equity, while on the other hand the private sector banks are consolidating themselves through mergers and acquisitions. The KMBs are of course currently working out challenging strategies even as 20 percent of their massive employee strength has dwindled in the wake of the successful Voluntary Retirement Schemes (VRS) schemes. Public Sector banks that imbibe new concepts in banking, turn tech savvy, leaner and meaner post VRS and obtain more autonomy by keeping governmental stake to the minimum can succeed in effectively taking on the private sector banks by virtue of their sheer size. Weaker PSU banks are unlikely to survive in the long run. Consequently, they are likely to be either acquired by stronger players or will be forced to look out for other strategies to infuse greater capital. Over the last two years, the industry has witnessed several such instances. For instance, Hdfc Banks merger with Times Bank Icici Banks acquisition of ITC Classic, Anagram Finance and Bank of Madura. Centurion Bank, Indusind Bank, Bank of Punjab, Vysya Bank are said to be on the lookout. The UTI bank- Global Trust Bank merger however opened a pandoras box and brought about the realization that all was not well in the functioning of many of the private sector banks. Foreign banks are likely to succeed in their niche markets and be the innovators in terms of technology introduction in the domestic scenario. While their focused operations, lower but more productive employee force etc will stand them good, possible acquisitions of KMB banks will definitely give them the much needed scale of operations and access to lower cost of funds. These banks will continue to be the early technology adopters in the industry, thus
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increasing their efficiencies. Also, they have been amongst the first movers in the lucrative insurance segment. Already, banks such as ICICI Bank and HDFC Bank have forged alliances with Prudential Life and Standard Life respectively. This is one segment that is likely to witness a greater deal of action in the future. In the near term, the low interest rate scenario is likely to affect the spreads of majors. This is likely to result in a greater focus on better asset-liability management procedures. Consequently, only banks that strive hard to increase their share of fee-based revenues are likely to do better in the future.
In (2005), overall, banking in India is considered as fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. Even in terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets-as compared to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility-without any stated exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector, the demand for banking services-especially retail banking, mortgages and investment services are expected to be strong. M&As, takeovers, asset sales and much more action (as it is unraveling in China) will happen on this front in India. Recently (March 2006), the Reserve Bank of India allowed Warburg Pincus to increase its stake in ICICI Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.
Success and Failures:
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The pre-nationalization phase (1950-69) was essentially marked by consolidation (mergers and amalgamation) and efforts to increase credit to the rural sector. Several new financial institutions were set up during this period, e.g., SFCs, IDBI, UTI, LIC, and ICICI, and the SBI also came into existence. Though State control of the financial system had begun, commercial banks remained in private hands. The nationalization of 14 major commercial banks in 1969 led to vast changes in the Indian banking system. The number of bank offices, particularly in unbaked and rural areas, increased sharply. Deposits and advances rose significantly and the number of accounts also increased as more and more people gained access to banks. As savings habit grew, the share of financial assets in GDP also increased. The changing destination of credit flows brought hitherto neglected sectors like agriculture and SSI into the fold of banking. Several qualitative factors brought about a change in the face of banking: specialized branches, area approach, lead bank scheme, etc. These achievements, however, were not without a cost and, consequently, the entire banking system came under severe strain: There was growing strain on profitability of banks as resources were not allocated efficiently. The sharp increase in volumes resulted in slackening of supervision and controls; work culture did not improve, leading to poor customer service, increasing arrears in housekeeping, rising incidence of frauds, etc. The quality of credit appraisal and supervision got diluted, resulting in a rise in nonperforming assets of banks. Financial health was further strained by inadequate provisioning on account of declining profitability. Little attention was paid to new management practices, systems and procedures, modern technology and human resources development. Consequently, productivity suffered and banks found themselves unable to face competition from new instruments and new institutions. In the early eighties, therefore, a phase of consolidation and liberalization was initiated to ease the pressure on banks. Towards this end, the RBI introduced several measures: branch expansion was slowed down, fresh recruitment in banks was restricted, a two year operational plan was introduced, deposit rates were increased, lending rate structure was rationalized and ceiling lending rate converted to a floor rate, inter-bank transfer of borrower accounts was permitted, ceiling on call money was removed, yield rates on Government securities and interest on CRR were increased, banks were allowed to set up subsidiaries and diversify into merchant banking, portfolio management, factoring, leasing, housing finance, etc., new instruments introduced and new institutions were set up, and selective Computerization of banks was begun. But banks, long used to functioning in a protected environment, have been slow to adapt themselves to take advantage of the opportunities
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thrown up by liberalization. To be able to function effectively in this changing milieu, therefore, banks need to overcome their constraints and become financially sound, and this strength must be backed by the development of its human resources. This performance of the banking system is definitely impressive, but it has a negative side also which until recently had not received the required attention. The directed investments and directed credit programmes together with mounting expenditures completely eroded the profitability of the banks.
Deficiencies of Indian Banking System before Nationalization: Commercial banks, as they were privately owned, on regional or sectarian basis resulted in development of banking on ethnic and provincial basis with parochial outlook. These Institutions did not play their due role in the planned development of the country. Deposit mobilization was slow. Public had less confidence in the banks on account of frequent bank failures. The savings bank facility provided by the Postal department was viewed a comparatively safer field of investment of savings by the public. Even the deficient savings thus mobilized by commercial banks were not channeled for the development of the economy of the country. Funds were largely given to traders, who hoarded agricultural produce after harvest, creating an artificial scarcity, to make a good fortune in selling them at a later period, when prices were soaring. The Reserve Bank of India had to step in at these occasions to introduce selective credit controls on several commodities to remedy this situation.
Banking Sector: Challenges Ahead India's banking industry is at a watershed. It has met and successfully overcome several challenges over the last decade. But bigger challenges lie ahead. Some of these lie in the distance Indian banking has still to go, before it can claim to be at the top of the Asia-Pacific region. According to an analysis by Standard & Poor's of the risks facing the Indian banking industry, it is ahead of banking industries of China, Indonesia, the Philippines and Vietnam. But the Indian banking industry still lags behind banking industries of Australia, New Zealand, Singapore, Hong Kong, Japan, Malaysia, South Korea, Taiwan and Thailand.
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A strong performance in the current year, strengthening the positive trends of the past, will certainly improve the short-term risk perception but focus must rest on key structural changes that have to occur if Indian banking is to be a positive force and not a drag on the rest of the economy. The first and the most obvious challenge will come from rising interest rates. The current perception is that interest rates have stopped falling and are likely to remain steady, but if demand for resources picks up as firms start to invest in new capacity and boom conditions fuel consumption demand, then there may be a tightening of liquidity and upward pressure on interest rates. This will act like a double-edged sword. Rising interest rates will put an end to the investment income bonanza of banks but they will also raise their interest income. A second challenge will come when real time gross settlement, the online payment system, has introduced in the banking system from next June. This will put an end to a lot of the 'float' that banks enjoy, the interest free deposits that customers have to maintain to meet payment obligations. The resultant efficiency gains in the payment system will enable fund managers of firms to manage their cash much better and consequently take away from banks a part of the interestfree deposits. To overcome this challenge, banks will have to re-do a good part of their pricing. At the end of the day, RTGS will lower, not raise, transaction costs of the banking industry as a whole. But the gainers will be the more efficient banks that have a clear idea of their costs and can price themselves effectively. A third and a key challenge will be the introduction of Basel II capital adequacy norms. These will make two demands on banks. They will have to measure the risks they bear much better. For this they will need to overhaul their management information systems so that they have a clear and quantifiable idea of their risks. Then they will have to look for capital to back that risk and ultimately earn enough to be able to service that capital. There is a huge potential for undertaking risk assessment by using technology. It is imperative for banks to grow but the key issue is deciding where and how.
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New ways of managing risk and asset-liability mismatches, like asset securitization, which unlocks resources and spreads risk, are likely to be increasingly used. The fourth and perhaps the cardinal challenge facing the banks will be not to get caught between two developments which act as pincers. The jobs shed by the banking sector in the last decade through VRS are small compared to what organized industry (as a whole) has shed. The challenge implicit in the massive downsizing and re-skilling that has to come about if Indian banking is to be globally competitive, cannot be over emphasised. Again, there is a silver lining to this. The reach of banking in the Indian economy, measured by things like bank finance enjoyed by retail customers, is minuscule compared to most other Asian economies. So there is a huge potential customer base for banks waiting to be tapped. By re-skilling their staff and extensively using technology, banks can raise productivity without commensurate downsizing. But to do this, they have to understand and be able to use technology and re-do processes so that small businesses and the rural sector can be serviced at a profit. This is not impossible; it is simply waiting to be done. Not just commercial banks but regional rural banks and cooperative banks will have to undergo a sea change in different ways. Banks formalizing their working with self-help micro credit groups could provide answers to issues like cost of lending and security. The regulator and the government should give up thinking in terms of imposing priority sector lending targets and start introducing incentives for doing business with the small sector. The nation's and the banks' future lies in this. To change, you have to change your thinking. Many believe that corporate who can afford to pay is paying the lowest interest rates and deserving poor borrowers are paying the highest interest rates. The corporate have their vocal trade bodies whereas the common man is voiceless. The corporate can beat down prices because they are efficient and can go shop elsewhere. The poor, on the other hand, have to be empowered, which the nationalized banks have singularly failed to do, going by how much of rural credit needs they meet.
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The banking industry worldwide has been showing steady progress since 2002. Much of the growth in the worldwide banking industry can be attributed to the surge in the retail-banking sector in the Asia Pacific region and Latin America. The Banking industry in the economies of Brazil, Russia, India and China has been showing exemplary growth owing to improving economic conditions, liberalization, changing consumer demographics and large segments of untapped population. These countries are witnessing steep growth in uptake of retail loans, specially housing, car, education, credit cards and other personal loans. In India growth in retail banking sector has helped growth of the overall banking sector. In future the retail banking industry in India is likely to reach a value of $300 billion by 2010.
CHAPTER TWO COMPANY PROFILE
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HISTORY: About ICICI Bank
ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. The Bank has a network of 2,540 branches and 7,037 ATMs in India, and has a presence in 19 countries, including India.
ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). Board of Directors Board Members Mr. K. V. Kamath, Chairman .................................................... Mr. Sridar Iyengar .................................................... Mr. Homi R. Khusrokhan
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.................................................... Mr. Arvind Kumar ................................................. Mr. M.S. Ramachandran .................................................. Dr. Tushaar Shah .................................................. Mr. V. Sridar Ms. Chanda Kochhar, Managing Director & CEO ......................................................... Mr. N. S. Kannan, Executive Director & CFO ......................................................... Mr. K. Ramkumar, Executive Director ......................................................... Mr. Rajiv Sabharwal, Executive Director
Awards-2011 Awards 2011 2004 2010 2003 2009 2002 2008 2001 Erstwhile ICICI Ltd ICICI Bank

2007 2000
2006 1999
2005 1998
ICICI Bank was ranked 2nd in the Banking sector and 10th in the overall "BT 500 For the second consecutive year, ICICI Bank was ranked second in the "India's 50 Ms.Chanda Kochhar, Managing Director & CEO was conferred with "Women of Ms.Chanda Kochhar, Managing Director & CEO, was the first woman to be named as Ms.Chanda Kochhar, Managing Director & CEO was ranked 5th in the International ICICI Bank tops the list of "Most Trusted Private Sector Bank" and ranks 10th in the Ms. Chanda Kochhar, Managing Director & CEO, was named among the 50 most
India's Most Valuable Companies", by Business Today Biggest Financial Companies" , in The BW REAL 500 by Business World Power" award, by The Asian Business leadership Forum (ABLF) the "Business Leader of the Year", by The Economic Times list of "50 Most Powerful Women In Business", by Fortune. She was ranked 10th in 2010. list of "India's Most Trusted Service Brands" by Brand Equity, Most Trusted Brands 2011 influential in global finance by Bloomberg Markets magazine
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o o o o o
Ms. Chanda Kochhar, Managing Director & CEO, featured in the Hall Of Fame of Ms. Chanda Kochhar, Managing Director & CEO, was ranked 43rd in the Forbes list ICICI Bank received the Best Manpower Efficient Award amongst private sector ICICI Bank won the Best Local Bank Gold by Trade and Forfaiting Awards, UK ICICI Bank was awarded The Asset Triple A Awards, Hongkong for: Best Domestic Transaction Bank (India) For 6th consecutive year won the Best Domestic Trade Finance Bank (India) Best Domestic Cash Management Bank (India) Best e-Commerce Bank (India) Best SME Bank (India) Ms. Chanda Kochhar, Managing Director & CEO, received the Global Leadership Ms. Chanda Kochhar, Managing Director & CEO, was named as one of the two best ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288 th in World Ms. Chanda Kochhar Managing Director & CEO, was conferred with the Ms. Chanda Kochhar, Managing Director & CEO, was ranked 17th in Fortune's 25 Ms. Chanda Kochhar, Managing Director & CEO, was ranked as the 5th most
Most Powerful Women in Indian business by Business Today of Most Powerful Woman in the world banks by FICCI IBA
Award for her contribution to the US India commercial relationship Indian CEOs in an annual poll conducted by Finance Asia magazine. Global Brands Report 2011, second year in a row. Rankings in Forbes Global 2000 list Transformational Business Leader of the Year , by All India Management Association (AIMA) Most Powerful CEOs in Asia. recognized and respected company leaders by American research firm, Penn Schoen Berland (PSB). The survey was conducted among 600 respondents from US, EU, Asia-Pacific and India in March

Ms. Chanda Kochhar Managing Director & CEO ranks 41 in the "50 Power List Ms. Chanda Kochhar, Managing Director & CEO, awarded the Skoch Challenger
2011", by India Today Awards 2011, for Banking. The Skoch awards recognizes best practices in people, projects and institutions for inclusive growth
o o
Ms. Chanda Kochhar, Managing Director & CEO, in the list of 25 most powerful ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks
professional women of the country , by India Today Association in the following categories: "Best Financial Inclusion Initiative" (first prize) "Best Online Bank" ( runner up)
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o o
"Best use of Business Intelligence" ( runner up) "Technology Bank of the year" ( runner up) ICICI Bank was recognized for its Special Citation of the Fully Electronic Branch Service Channel, first set up at Hiranandani Estate, Thane, at the Financial Insights Innovation Awards held in conjunction with Asian Financial Services Congress

For the second year in a row, ICICI Bank was ranked 70th in the Brandirectory league ICICI Bank UK, HiSAVE product range has been awarded the Consumer Moneyfacts ICICI Bank ranked second in the financial services sector in Business World's,"Most ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the "2010 Ms. Chanda Kochhar, Managing Director & CEO, ICICI Bank conferred with "Padma
tables of the worlds most valuable brands by ,The BrandFinance Banking 500. Awards 2011 for the 'Best Online Savings Provider' Respected Company Awards 2011" Best Companies To Work For" by Business Today Bhushan"
ICICI Foundation for Inclusive Growth(CSR Initiative)
For over five decades, the ICICI Group has partnered India in its economic growth and development. Promoting inclusive growth has been a priority area for the Group from both a social and business perspective. We strive to make a difference to our customers, to the society and to the nations development directly through our products and services, as well as through our development initiatives and community outreach. ICICI Foundation for Inclusive Growth (ICICI Foundation) was founded by the ICICI Group in early 2008 to carry forward and build upon its legacy of promoting inclusive growth. ICICI Foundation works with government authorities and specialised grassroots organisations to support developmental work in four identified focus areas.
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It is committed to investing in long-term efforts to support inclusive growth through effective interventions.
Vision Our vision is a world free of poverty in which every individual has the freedom and power to create and sustain a just society in which to live. Mission Our mission is to empower the poor to participate in and benefit from the Indian growth process through integrated action in the fields of primary health, elementary education, financial inclusion and sustainable livelihood. This will be achieved through active collaboration with the government and independent organisations. Our History ICICI Banks Social Initiatives Group (SIG), a non-profit group set up within ICICI Bank in 2000, pioneered our work on health, education and access to finance. In January 2008, ICICI Group established ICICI Foundation for Inclusive Growth, which carries forward this legacy.
YEAR WISE PERFORMANCE: ICICI Bank 2QFY2012 performance highlights and results update
For 2QFY2012, ICICI Banks standalone net profit grew by reasonable 21.6% yoy to Rs.1,503cr, in-line with ours as well as streets estimates. Sequentially stable NIM and asset
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quality were the key highlights of the results. Continued reduction in NPA provisioning burden drove net profit growth. We maintain our Buy recommendation on the stock. Stable NIM and asset quality: During 2QFY2012, the banks business momentum picked up a bit as compared to the previous quarter, with advances growing by 6.0% qoq (up 20.5% yoy) and deposits increasing by 6.3% qoq (moderate 9.9% yoy growth). Saving account deposits growth was relatively better at 10.9% yoy. Period-end CASA ratio improved marginally to 42.1%. Reported NIM remained flat on a sequential as well as yoy basis at 2.6%, as higher yields were offset by higher funding costs. Domestic NIM compressed marginally by 10bp qoq to ~2.9%; however, international NIM improved by ~20bp qoq to 1.1%. Growth in fee income continued to be below expectations at 7.0% yoy. Employee expenses rose considerably by 35.0% yoy, primarily due to higher headcount. Provisioning expenses declined substantially by 50.3% yoy to Rs.319cr on the back of reduced share of unsecured credit portfolio of the bank. Asset quality remained largely stable with annualized slippage ratio remaining within manageable limits at ~1.4%, gross NPAs remaining flat sequentially and net NPAs declining by 5.2% qoq. Provision coverage ratio (as per the RBIs guidelines) remained healthy at 78.2% in 2QFY2012 (76.9% in 1QFY2012). Outlook and valuation: The banks substantial branch expansion in the past 24 months is expected to sustain a far more favorable deposit mix going forward. Moreover, a lower risk balance sheet has driven down NPA provisioning costs, which we believe will enable RoE of 15.4% by FY2013E (with further upside from financial leverage). At the CMP, the banks core banking business (after adjusting for subsidiaries) is trading at 1.8x FY2013E ABV (including subsidiaries, at 1.7x FY2013E ABV). We maintain Buy on the stock with a target price of Rs.1,114.
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Performance: In the Year 2006
ICICI Bank Announces Performance Review - Quarter Ended September 30, 2006: 30% Year-on-Year Growth in Profit after Tax. Highlights * Operating profit excluding treasury income increased 65% in Q2-2007 to Rs. 1,325 crore (US$ 288 million) from Rs. 804 crore (US$ 175 million) in the quarter ended September 30, 2005 (Q2-2006).
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* Operating profit increased 54% to Rs. 1,612 crore (US$ 351 million) in Q2-2007 from Rs. 1,044 crore (US$ 227 million) in Q2-2006. * Profit after tax for Q2-2007 increased 30% to Rs. 755 crore (US$ 164 million) from Rs. 580 crore (US$ 126 million) for Q2-2006. * Net interest income increased 47% to Rs. 1,577 crore (US$ 343 million) for Q2-2007 from Rs. 1,070 crore (US$ 233 million) for Q2-2006. * Fee income increased 62% to Rs. 1,138 crore (US$ 248 million) for Q2-2007 from Rs. 704 crore (US$ 153 million) for Q2-2006. * Profit after tax increased 24% to Rs. 1,375 crore (US$ 299 million) for the six-month period ended September 30, 2006 (H1-2007) from Rs. 1,110 crore (US$ 242 million) for the sixmonth period ended September 30, 2005 (H1-2006). * Retail assets increased 57% to Rs. 107,679 crore (US$ 23.4 billion) at September 30, 2006 from Rs. 68,537 crore (US$ 14.9 billion) at September 30, 2005. * Deposits increased 57% to Rs. 189,499 crore (US$ 41.3 billion) at September 30, 2006 from Rs. 120,452 crore (US$ 26.2 billion) at September 30, 2005. Operating review Credit growth The Bank's net customer assets increased 47% to Rs. 163,785 crore (US$ 35.7 billion) at September 30, 2006 compared to Rs. 111,514 crore (US$ 24.3 billion) at September 30, 2005. The Bank maintained its growth momentum and market leadership in the retail segment. In H1-2007, the Bank's total retail disbursements were about Rs. 33,500 crore (US$ 7.3 billion) including home loan disbursements of about Rs. 13,400 crore (US$ 2.9 billion). Retail assets constituted 69% of advances and 66% of customer assets. The Bank is focusing on non-fund based products and services, as well as capitalising on opportunities presented by the domestic and international expansion of Indian companies. The Bank is also extending its reach in the small and medium enterprises segment. Performance: In the Year 2007 Highlights * Operating profit increased 58% to Rs. 1,524 crore (US$ 374 million) in Q1-2008 from Rs. 965 crore (US$ 237 million) in Q1-2007.
* Profit after tax increased 25% to Rs. 775 crore (US$ 190 million) in Q1-2008 from Rs. 620 crore (US$ 152 million) in Q1-2007.
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* Fee income increased 35% to Rs. 1,428 crore (US$ 351 million) during Q1-2008 from Rs. 1,055 crore (US$ 259 million) in Q1-2007.
* Net interest income increased 16% to Rs. 1,714 crore (US$ 421 million) from Rs. 1,475 crore (US$ 362 million) in Q1-2007.
* Profit before tax increased 30% to Rs. 972 crore (US$ 239 million) in Q1-2008 from Rs. 749 crore (US$ 184 million) in Q1-2007.
* Total advances increased 35% to Rs. 198,277 crore (US$ 48.7 billion) at June 30, 2007 from Rs. 147,184 crore (US$ 36.2 billion) at June 30, 2006.
* Deposits increased 26% to Rs. 230,788 crore (US$ 56.7 billion) at June 30, 2007 from Rs. 183,006 crore (US$ 45.0 billion) at June 30, 2006.
Capital raising The Bank successfully undertook a capital raising exercise of about Rs. 20,000 crore (US$ 4.9 billion)1 through a simultaneous public issue in India and issue of American Depositary Shares (ADS) in the United States. This was the largest capital raising exercise by an Indian company. The domestic offering was subscribed 11.5 times.
Credit growth The Bank's total advances increased 35% to Rs. 198,277 crore (US$ 48.7 billion) at June 30, 2007 from Rs. 147,184 crore (US$ 36.2 billion) at June 30, 2006. The Bank's retail advances increased by 29% to Rs. 127,416 crore (US$ 31.3 billion) at June 30, 2007 from Rs. 98,684 crore (US$ 24.2 billion) at June 30, 2006 after sell-down of about Rs. 3,850 crore (US$ 946 million) of retail loans during Q1-2008. Retail advances constituted 64% of advances at June 30, 2007. The proportion of advances of the Bank's international branches in total advances increased from 9.1% at June 30, 2006 to 16.4% at June 30, 2007. The Bank is focusing on fee based products and services, as well as utilising opportunities presented by the domestic and international expansion of Indian companies. The Bank's rural portfolio increased by 24% to
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about Rs. 14,136 crore (US$ 3.5 billion) at June 30, 2007 from Rs. 11,368 crore (US$ 2.8 bn) at June 30, 2006. The Bank is also extending its reach in the small and medium enterprises segment.
DepositGrowth The Bank's total deposits increased 26% to Rs. 230,788 crore (US$ 56.7 billion) at June 30, 2007 from Rs. 183,006 crore (US$ 45.0 billion) at June 30, 2006. During this period, savings deposits increased by 33% to Rs. 32,121 crore (US$ 7.9 billion) from Rs. 24,217 crore (US$ 5.9 billion). The Bank added 198 ATMs during the quarter, taking the number of ATMs to 3,469. The Bank had 950 branches (including 48 extension counters) at June 30, 2007. International operations The Bank has wholly-owned subsidiaries, branches and representative offices in 17 countries, and an offshore banking unit in Mumbai. The total assets of the Bank's international branches increased to about Rs. 53,550 crore (US$ 13.2 billion) at June 30, 2007 from about Rs. 32,000 crore (US$ 7.9 billion) at June 30, 2006. The total assets of the Bank's international banking subsidiaries increased to about Rs. 36,100 crore (US$ 8.9 billion) at June 30, 2007 from about Rs. 16,500 crore (US$ 4.1 billion) at June 30, 2006. The Bank's remittance business volumes were about Rs. 8,500 crore (US$ 2.1 billion) during Q1-2008. ICICI Bank UK's profit after tax for Q1-2008 was US$ 18.7 million. At June 30, 2007 the Bank's international operations accounted Capital for about 20% of its consolidated banking assets. Adequecy
The Bank's capital adequacy at June 30, 2007 was 11.0%2, including Tier-1 capital adequacy of 7.1%. The impact of the equity capital raised in June 2007 will be reflected from the next quarter onwards. Asset quality
At June 30, 2007, the Bank's net non-performing assets constituted 1.3% of net customer assets. Performance: In the Year 2008
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ICICI Bank Limited (NYSE: IBN) ICICI Bank has a very strong capital position, having proactively raised Rs. 20,000 crore (about US$ 5 billion) in June 2007, almost doubling its capital base. It has a networth of over Rs. 47,000 crore (i.e. over US$ 10 billion) and a capital adequacy ratio of 13.4% at June 30, 2008, as against the regulatory requirement of 9.0%. This is among the highest levels of capital adequacy in large Indian banks. This reflects the healthy capital position and comfortable level of leverage. Its banking and non-banking subsidiaries are also well-capitalised.
ICICI Bank has consolidated total assets of over Rs. 484,000 crore (over US$ 105 billion), which is diversified across a wide range of asset classes in India and overseas. ICICI Bank is profitable. It made a profit after tax of Rs. 4,158 crore (over US$ 900 million) in FY2008 and Rs. 728 crore (over US$ 155 million) in the first quarter of this year. This was due to the strong core performance, which more than offset the impact of adverse debt and equity market conditions in India and globally since the second half of FY2008. ICICI Banks wholly-owned subsidiary, ICICI Bank UK PLC has, as part of its normal treasury operations, a diversified investment portfolio.
ICICI Bank UK PLC has zero exposure to US sub-prime credit, and zero non-performing loans. About 98% of its non-India investment book of US$ 3.5 billion is rated investment grade and above, with about 89% rated A- and above. In addition, ICICI Bank UK PLC holds cash equivalent instruments (inter-bank placements and certificates of deposit) of USD 1.1 billion. As on the last balance sheet date of June 30, 2008, ICICI Bank UK PLC had a capital adequacy ratio of 17.4%..
Performance: In the Year 2009 Performance Review Year ended March 31, 2009 Dividend of Rs. 11 per share proposed, same as previous year Profit before tax of Rs. 5,117 crore for the year ended March 31, 2009 compared to Rs. 5,056 crore for the year ended March 31, 2008 12% year-on-year increase in operating profit for the year ended March 31, 2009 14% year-on-year reduction in costs due to cost rationalization measures
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Current and savings account (CASA) ratio increased to 28.7% at March 31, 2009 from 26.1% at March 31, 2008 Increase of Rs. 5,286 crore in CASA deposits in quarter ended March 31, 2009 Strong capital adequacy ratio of 15.5% and Tier-1 capital adequacy ratio of 11.8% after proposed dividend; Tier-1 capital adequacy ratio highest among large Indian banks.
Performance: In the Year 2010 ICICI Banks net profit declined by 13.4% yoy, which was in line with our estimates. The key positives from the results are the 270bp qoq improvement in CASA to 39.6% and a decline in operating expenses by 21.4% yoy and 4.4% qoq, despite the bank adding 106 branches during the quarter, taking the total branch network to 1,626. Along with the large planned branch network of 2,000 branches by FY2011E and a capital adequacy of 19.4%, we believe that the Bank is very well-positioned to leverage to improve its return ratios. At the current levels, we believe that the stock is trading at attractive valuations. Hence, we maintain a Buy on the stock.
Strategic transformation continues
The Banks Balance Sheet contraction continued in 3QFY2010, as an outcome of the ongoing strategy over the past few quarters to favorably realign the mix of assets and liabilities. The total deposits of the bank remained flat sequentially (declined by 5.5% yoy) to Rs1,97,653cr
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during 3QFY2010; however, the advances declined sharply by 6.1% sequentially (15.6% yoy) to Rs1,79,269cr. The sharp drop in the advances book was attributable to the repayments from retail, and the overseas advances portfolio.
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The proportion of Retail loans in the overall loan mix came down from 54% in 3QFY2009 to 45%, driven by a reduction of 37%, 48% and 40% yoy in the vehicle loan, personal loan and credit card segments, respectively, due to ongoing repayments and negligible new disbursements. In the retail segment, the Bank has indicated that, going forward, the focus will mainly be on Home loans (which are largely being booked in the Home Loan subsidiary) as well as on Car loans. Reflective of the external demand as well as the Banks conscious efforts to realign its risk exposures, this reduction in the proportion of the relatively riskier, retail loan segment was mainly offset by a doubling in the proportion of large corporate loans from 12% of total loans in 3QFY2009 to 18%.
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CHAPTER THREE PRODUCT INFORMATION Loans ICICI Bank offers the following loan facilities:
Home Loans Personal Loans: The product in the Title Two Wheeler Loans Car Loans Commercial Vehicle Loans Pre-approved Loans Loan Against Property Loans Against Securities Loan Against Gold Ornaments
PRODUCT SUMMARY Personal loan is one of the major loans provided by the banks to the individuals. The borrower can use these loans for his/her personal purpose. The amount of loan is dependent on the income of the borrower and his/her capacity to repay the loan.
ICICI Bank Personal Loan - Key Benefits
Loan up to Rs. 10 Lakhs No security/guarantor required Faster processing. Minimum documentation Attractive rates of interest Flexible repayment option of 12-48 months This is a clean installment loan facility of 12- 48 months, for amounts ranging from Rs.50, 000 to Rs. 10,00,000 to permanent employees of financially sound MNCs / Public Limited companies/Private Limited/ PSUs, and to self employed professionals/businessmen. Apart from being offered to individuals, it is also offered to a group of employees in selected corporate, as Corporate Employee Loan Program. Where loan repayment will be through the individual PDCs.
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Normally there is no end use monitoring. Personal loans are generally taken for buying consumer durables, computers, furniture, used cars, or to retire an existing high cost loan or for financing a wedding in the family or even for financing a holiday local or foreign.
Personal Loans are fast and easy to get.
Get your approval letter online. Ask for pick-up of documents according to your convenience.
ICICI Banks quick and easy Personal Loans help to make a difference in your life. No matter what your financial needs are - unexpected expenses, school fees, wedding in the family, home improvement or that long awaited vacation. Whatever the occasion, our range of Personal Loans can help. The procedure is simple, documentation is minimal and approval is quick.
Personal Loan Interest Rates

Service Charges & Fees for Personal Loans Enclosed find the service charges for an ICICI Bank Personal Loan Prepayment of the loan is possible after 180 days of availing the loan. Prepayment charges as applicable would be levied on the outstanding loan. Part prepayment facility on the loan is not available.
Description of Charges
Personal Loans Interest Rates
Loan Processing Charges / Origination Charges Upto 2% of loan amount plus Service (Non-Refundable) Tax Prepayment Charges The lower of the two amounts given below:
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1) 5% of principal outstanding or 2) Interest outstanding for the unexpired period of the loan. Charges for late payment Cheque Swap Charges Cheque return charges^ Amortisation schedule charges Statement of Account Charges Prepayment/Foreclosure Statement Charges 2% per month Rs. 500/- per transaction Rs. 400/- per return Rs. 200/- per schedule (inclusive of service tax) Rs. 200/- per statement (inclusive of service tax) Rs. 100/- per statement (inclusive of service tax) Rs. 500/- per NOC (inclusive of service tax) Rs 200/- per NOC (inclusive of service tax) Rs. 200/- per schedule (inclusive of service tax)
Duplicate No Objection Certificate/ No Due Certificate
Duplicate Repayment/Foreclosure statement
Personal Loans Application Process How to Get Personal Loan

You have the option of applying online for a personal loan. Click here to do so. An ICICI Bank Representative will contact you to service your loan requirements. On receiving the completed application form with the requisite documents, we shall
process your loan within 3 working days.

Please do not handover any payment via cash/ third party cheque with your
application. Kindly ensure that all Post Dated Cheques are drawn in favour of "ICICI Bank Ltd - Personal Loans" filled-in in all respects and endorsed "Account Payee only". .
If you would like to give us a call or e-mail us, click here for our contact details.
*Apply online for an ICICI Bank Personal Loan With ICICI Bank Personal Loans, you can get instant money for a wide range of your personal needs like renovation of your home, marriage in the family, a family holiday, your
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child's education, buying a laptop, medical expenses or any other emergencies. Alternatively, the forms are available at our Branches. You can fill the form out and submit it at the nearest Branch.
CUSTOMER PRIVILEGES:

If you are a ICICI Bank account holder, we have special rates for you. If you are an auto / personal / home loan customer or are a credit card holder or paying an insurance premium or enjoying an OD/CC facility avail of instant loans without income documents.
If you are an existing ICICI Bank Personal Loan customer with a clear repayment of 12 months or more, we can Top-Up your personal loan.
. ELIGIBILITY CRITERIA FOR A PERSONAL LOAN ARE: Salaried individuals Must be working for Profile a Public Ltd co./ MNC/ large Pvt Ltd co. Age 23 - 58 years resident Indian Rs. 10,000/- with no loans outstanding. Minimum education Residence telephone Total work experience Graduate Required Professionals Must be a Doctor (MS, MD, MBBS, BDS) , C.A., Architect, Consultant, Interior Designer 23 - 58 years resident Indian Rs.75,000/- or more for the last 2 years. Professional degree Required Min 1 year Min 5 years Businessmen Must have clean payment track record of more than 1 year of a previous loan. 23 - 58 years resident Indian Filed IT returns of Rs.75,000/- or more for the last 2 years Graduate Required Min 1 year Min 5 years
Net monthly salary of Filed IT returns of Income
Years in city Min 1 year Min 1 year
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To avail a Personal Loan, you will need to provide the following documents: Salaried individuals Application form Yes 1 photograph Identity details Signature verification from Yes bank Degree certificate & Certificate of practice Payment track record No* Latest payslip & Form Income details 16 (Form 16 required only when applying under holiday finance) Bank account st For the last 3 months No* IT Returns & Balance Sheet & P/L Account years For the last 6 months Yes IT Returns & Balance Sheet & P/L Account years For the last 6 months No Yes No Yes Yes Yes Yes Professionals Yes Yes Yes Yes Businessmen Yes Yes Yes Yes
Residence details Yes
statement for the last 2 statement for the last 2
ICICI Personal Loans are the easy fast Personal Loans offered to you by ICICI Bank. You can use it for anything at all - to renovate your home, your child's education or for a celebration in the family. These loans range from Rs Rs.50,000 to 50 lakh* and are flexibly repayable in 12 to 60 months for Salaried individuals and Professionals / Self employed businessmen from 12-36 months.
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You can avail of a loan from Rs.50,000-50 lakh* based on your income and repayment capacity. You can club the income of your spouse to increase your loan amount.
On submission of your entire documents in accordance with the Bank requirements it takes 72 hours. All loan approvals are at the discretion of the Bank.
The Jaldi Loan cheque can be drawn either in the customer's own name or can be drawn on any third party's name as requested by the customer while signing up the agreement.
How do I repay the loan? You can repay the loan over a period of 12-60 months in case if you are salaried or 12-36 months incase of you are a Self Employed Professional/Self Employed Businessman. Equated Monthly Installments (EMIs) can be paid either by post dated cheques, or through ECS facility.
The down payment cheque includes one monthly installment and service charge (which is a one time charge).
To obtain the loans there is no need to provide any security or collateral.
You can choose to repay the loan anytime after 6 months of availing the loan at a prepayment penalty of 4% on the principal outstanding of your Loan.
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You can avail of pre approved loans upto Rs.10 lakh without submitting any income documents :
o
If you are a Personal / Auto / Car/ User Car Loan customer for the last 12 months. If you are a credit card holder for at least 13 months. If you hold a insurance policy which is 2 years old and pay an annual premium of Rs.20,000. If you enjoy an OD / CC facility of more than 10 lakhs from any Nationlised / Foreign / Private banks.
o o
DEPARTMENT STRUCTURE:BANK
ASSETS
LIABILITY
PERSONAL LOAN
CAR LOAN OD/CC
CASA
FDs
INSURANCE
MARKETING
CREDIT
OPERATIONS
COLLECTION
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CREDIT PROCESSING DEPARTMENT Executive Director Business Head National Credit Manager Regional Credit Manager Local Credit Manager Credit Manager CPA (Credit Processing Agency)
SALES ORGANISATIONAL CHART EXECUTIVE DIRECTOR BUSINESS HEAD NATIONAL SALES MANAGER REGIONAL SALES MANAGER LOCAL SALES MANAGER RELATIONSHIP MANAGER
DSA
DST
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M
CHAPTER FOUR SOURCING
SALES WORKING The sales team at ICICI BANK is divided into three sourcing channels, they are as follows:A) DST B) DSA C) CROSS SALES
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DST-: DST stands for the Direct Sales Team: - The executives working at the DST level are the new entrants into the organization, they are the ones who the new in the industry, and they neither have experience nor any professional qualifications. DSA: - DSA stands for Direct sourcing agency the head is being appointed by sales office but further all appointments are being made by DSA head only. This in an out side agency which work for the bank on commission bases. CROSS SALES: - In the cross sales we look after only for the existing customers of the ICICI bank, which can be a personal loan department customer or a customer of other department like home loan, casa.
STEPS FOR SALES -: Reference -: This may be available from the existing customers or the friends or relatives also we get it from the application forms of the existing customers as we take names of at least two references in each file. Lead -: the executives makes the call to the reference given and tries to make customer convinced to meet and once he/she is ready , the date and time for meeting is being decided. These are further generated by either telecalling , cold calls , by meeting. Documentations-: in this the executive tells the customers about the products that can suit the customer and then inform the customer about the documents which are required , the application form is being filled up. The processing fees being charged are also asked. Well-Come Call -: Now the file is brought to the DSA?DST?CROSS SALES office and being checked by the Team Leader , also the sales coordinators gives the call to the customer and checks whether right product , at the right rate is being informed to the customer or not . Also if any other query is their it is been checked. Dedup Check -: Now the sales coordinators fire the dedup checks, which is a centralized system to check that whether if customers has been a defaulter of any other bank or not or is some where politically linked or not.
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HIGH NET WORTH INDIVIDUAL A high net worth individual is a person with large personal financial holdings. Traditionally the term used was millionaire, but in recent years the term high net worth individual has become the descriptor of choice. A high net worth individual has financial assets worth more than US$1 million. High net worth is used to describe financial assets, discounting real-estate. This makes a large difference in the number of people who may be classed as high net worth individuals: in 2003 there were nearly 2.2 million people in the United States who would be classified as having high net worth, while over 7.9 million people had assets including real estate worth in excess of a million dollars. In addition to the category of high net worth individuals (HNWIs), there is a second category, called ultra-high net worth individuals (UHNWIs), comprised of people with financial assets in excess of US$30 million. In the global population, this second category makes up approximately 1% of the total high net worth population. The prestige once associated with being a high net worth individual has diminished somewhat in the past few decades, as this level of wealth becomes more and more common, particularly in the United States. Throughout the United States, one may find entire neighborhoods populated solely by high net worth individuals, and in some sectors of the business world it is not uncommon for the average employee to be propelled to high net worth status by their yearly income. With the depreciation of the dollar against many foreign currencies, large sections of foreign populations were also raised to the status of high net worth individuals simply as a result of the relative value of their wealth. In addition to the advancement of a large sector of people to high net worth status, a notinsubstantial number of people have reached levels of "super millionaire" or "billionaire", both of which act to leave "normal" high net worth individuals feeling as though they are in a lower class. As of 2005, there were more than 600 US-dollar billionaires in the world, with the top 34 having in excess of US$10 billion. With wealth at these levels, entire tiers of luxury exist that are inaccessible to those high net worth individuals having only a few million dollars at their disposal. Companies exist which cater exclusively to high net worth individuals and their lifestyles. Everything from personal real-estate, jewelry brokers, kidnap and ransom insurance, yachting,
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and financial investment has specialists who devote themselves to high net worth or ultra-high net worth individuals and their specific needs.
ICICI BANKS STRATEGIES FOR ATTRECTING HNWI: ICICI bank is following different types of strategy for attracting high net worth individual, because of this type of strategy the business of the bank is also improving day by day. Presently the strategies that the bank is using are: References: this is the one of the most important way to get information about the HNWI customers we can get the references through our existing customers or from our own references. Cross Sales: In the cross sales to find HNWI customers we see the past track of the existing customer like in the case of current account customer to find HNWI we see that who is maintaining Rs 1 lac in there account then we offer them loan by doing telecalling. DSA/DST Efforts: For attracting HNWI customers DSA/DST do there own efforts for getting more commission .RM and there channels also plan strategy in there own level for completing there target
Good service/Customer satisfaction: ICICI bank offer lots of services which attract
customers like jaldi loan which offers a customer to get loan fastest as possible, and customer satisfaction is one of the most important thing to maintain reputation in between the customers so they also promote the company name in the market.
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WORKING OF CREDIT PROCESSING AGENCY (CPA)
LOG IN The file is been logged in once the file is complete with all necessary documents on the part of the sales. Here, we have the MIS which is being maintained to keep the record of all these files which are being brought into the credit. The entry is being made into according to the purpose of the file either for SANCTION? OR DISBURSMENT?. Further we have the FCU i.e. the FRAUD CONTONMENT UNIT, once he checks the file is being stamped only fresh are being given for this check.
PROCESSING Once the file is logged in and stamped the CPA rechecks that if the file is complete with the all necessary details or not, the processor checks out if there is any discrepancy in the file, or any other specific query in the bank statement or the salary slips. During this check we also see that if any residential / official landline number is being given or not. All these queries are specified queries are specified in the Discrepancy sheet. The processor also checks if there is any cutting on the application form or not and if it is then whether he counter sign is avaible or not.the names and address of at least two people is required. The self attested photographs of the applicant and of the co-applicant if any.
QUERIES RAISED
The three monthly statements might not be available If there is cutting on the application form and no counter signature is given ITRs (Income Tax Return) for two years is not there in file. 6 monthly bank statement is not present, including the latest Two references are not mentioned If the loan is above 25 lacs and then the co-applicant should be present Landline number is not present either of residence or office The Age, ID, and the address proofs given are either not complete or clear enough
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The age filled in form is different from the proof of age given /address proof differs from the given
CHECKS DONE
Dedup Check:The sales co-ordinates file the request in this before logging the file, and the final check is being made by the credit office. Dedupe checks if customer has been a defaulter of any other bank for any type of payments, further the dedup maintains the internal checks, it tells if any current loan is going with ICICI Bank or has been defaulter in any other loans or credit card facility available. If any match is being the file gets rejected and so decline.
There are some agencies, which is very helpful for the bank for verifying the applicants credit. The description of each of them is as follows.
F.I.:The Field Investigation means to verify & cross check the information given by the person physically one to one with customer. For Field Investigation is done through some agency that has done tie up with the bank for that process. For getting the required information normally the authorized FI agencies perform the following activities. Tele verification of Residence Tele verification of Office/ Business Residence verification by visit Business verification by visit
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Reference Check by telephone inquiry De- dup against available negative data base
To conduct many of the above mentioned activities an attempt is made on best effort basis to meet the applicant himself/ herself at least at one place i.e. at residence or office. However if the applicant himself / herself is not met, effort are made to confirm his / her residence at the given address by meeting a close relative at the residence. For confirming the employment of the customer at the given address his colleagues or HR can be contacted. Similarly other mode to perform some of the activities mentioned above are telephone conversation, validation through the telephone website/CD Rom, verification on the agencys negative database etc. Appointment of Agency The credit decision depends heavily on FI activity; it is of the utmost importance for the bank to appoint the best FI agencies. The Credit manager recommends a set of agencies for appointment to the Area and Regional Credit managers, who in turn based on the credentials and after interviewing the agency proprietor, approves the appointment of FI agencies. While doing the FI (Field Investigation) following things should be kept in mind.
Dos Be polite and courteous, apologize if required. Listen patiently to what is being said by the other person. Ask only for relevant documents from customer. No report should be submitted without a clear decision either Recommended / Not Recommended. Donts Do not enter into argument with the customer.
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Do not disclose the fact that customer has applied for a loan / credit to minors / servants at residence and to peons in office. Do not question servants or minor in the family. Do not ask for any personal questions about the customer to the neighbors. Do not ask for any additional documents that are not really needed.
Roles and Responsibilities of FI Agency Staff In FI activity Field executives & back office staff of the FI agencies both play important roles to complete the FI in time. The roles and responsibilities of back office staff and Filed office executives of FI are mentioned below:Back office Staff: Coordinate and initiate: Coordinate assigning cases to the field executive. Initiate checks on applicant with the database available. Use feedback obtained from field executives to recommend status of the case. Write verification reports and fax/ mail to initiator.
Field Executive: Obtain information/ feedback on: Exterior and interiors of applicants residence, office or both. Area/ locality of applicants residence, office or both. Number of residents, number of earning members, type and ownership of residence. (Residence verification). Number of dependents and assets owned by the applicant. Business activity: Active or Idle. Name board and assets noticed at office. Office ownership for self employed. Confirmation from a neighbor. Report information and observation to back office staff.
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Cross Check of some of the documents: There are agencies, which do the verification of the documents for verifying it with original statement. The documents to be check by this Agency are as follows If the person is Salaried then bank statement & Form 16 is checked. If the person is SENP or SEP then the documents to be checked is bank statement & ITR (Income Tax Return) of the customer. But if the applicant has put the file as a TOP UP then the F.I. is not done if the applicant has not changed the location.
F.C.U.:Fraud Containment Unit is a very important in the Credit Appraisal because it is the Agency that does the checking of the fraud in the documents sends by the customer for approval of the loan. The person from the Agency will see if there is any doubtful document if found the person will take the photocopy of that document & send for the verification. This agency is also called R.C.U. (Risk Containment Unit).
CIBIL The Credit Information Bureau (India) Limited (CIBIL) was incorporated in 2000. CIBILs aim is to fulfill the need of credit granting institutions for comprehensive credit information by collecting, collating and disseminating credit information pertaining to both commercial and consumer borrowers, to a closed user group of Members. Banks, Financial Institutions, Non Banking Financial Companies, Housing Finance Companies and Credit Card Companies use CIBILs services. Data sharing is based on the Principle of Reciprocity, which
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means that only Members who have submitted all their credit data, may access Credit Information Reports from CIBIL. The relationship between CIBIL and its Members is that of close interdependence. The establishment of CIBIL is an effort made by the Government of India and the Reserve Bank of India to improve the functionality and stability of the Indian financial system by containing NPAs while improving credit grantors portfolio quality. CIBIL provides a vital service, which allows its Members to make informed, objective and faster credit decisions.
THE BENEFITS OF A CREDIT BUREAU Increased Credit Volumes Credit Bureaus facilitate increased lending opportunities for credit grantors while allowing easier access to credit for borrowers. The existence of credit bureaus in developed countries has facilitated increased market penetration of credit (to more than 66% as a percentage of GDP as compared to 3% for India) while keeping non-performing loans in check (approximately 1% of outstanding credit).
Borrowers The widespread use of credit data will provide consumers with fast and easy access to the lending resources they need while reducing operating and risk costs for credit grantors. These reduce costs will be passed on to an extent to consumers with demonstrated credit performance in the form of lower interest rates. This easy availability of reasonably price credit will provide borrowers with the means to a higher standard of living.
Ways to improve credit:

Immediately establish a budget in order to control cash outflows. Ensure that applicants income level permits an additional monthly outflow if there is a plan to take a loan.
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Investigate applicants options in order to reduce interest and other credit related costs, e.g., refinance an outstanding loan at fixed interest rates if there is a significant drop in interest rates or you discover a significantly cheaper option, etc. This will make your debt burden easier to manage.
Use some of savings to repay some of your debt. Always pay on time.
Members of CIBIL Banks, Financial Institutions, State Financial Corporations, Non-Banking Financial Companies, Housing Finance Companies and Credit Card Companies are Members of CIBIL. CIBIL function For credit grantors to gain a complete picture of the payment history of a credit applicant, they must be able to gain access to the applicant's complete credit record that may be spread over different institutions. CIBIL collects commercial and consumer credit-related data and collates such data to create and distribute credit reports to Members.
CIBIL get the information from CIBIL primarily gets information from its Members only and at a subsequent stage will supplement it with public domain information in order to create a truly comprehensive snapshot of an entitys financial track record.
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CHAPTER FIVE CREDIT APPRAISAL
Procedure for appraisal of credit proposal For an outsider, bank lending may appear to be simple affair. But lending of funds is not easy as one imagines. A banker is guided by various considerations. As a bank deals with other peoples money, he exercises utmost caution and employs a number of modern tools of appraisal before sanctioning the loan to selected borrowers. So whatever the type of advances they make the bank adopt certain procedure. The first step for a borrower to avail of a bank loan is to get the prescribed form from the respective branch from where he intends to obtain a loan. Different forma of application are available for different categories of loans. The application form is available at free of cost. The next step is to fill in the application form which is the base for the banker to decide whether to sanction the loan or not. The bank manager or field staffs thoroughly scrutinize the application form and relevant documents. The process is known as appraisal of the loan. The following information will be ascertained by the bank manager: Particulars of the borrower The manager learns from the application the details of the borrower like the name, address, his ability, integrity and experience, his establishment, the nature of his business, his reputation in the market etc.
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Purpose of the loan
The purpose of the loan is very important. The banker rarely lends For Unproductive purpose.
Credit appraisal Credit appraisal is a technique by which a banker estimates the soundness of credit proposal by careful analysis. Credit appraisal leads to finding out the quantum of credit required for a borrower and the safety of such credit. Traditionally commercial banks are lending short term credit needs meeting the working capital gap.therefore,the banker takes adequate care in selecting the right proposal and looks for various particulars like sales, expected profit, tax factor etc. the banker may also ask for current assets and current liabilities. The banker may ascertain the maximum permissible bank finance for the working capital as per the tandon committee report. The banker evaluates the proposal taking into account the following: Approval has been approved by the authorities. satisfy himself as to whether the project has the legal
The banker examines whether the proposed project submitted respective bodies. The banker may sanction in
terms of required license, approvals from the appropriate
Financial feasibility
The banker evaluates the project by using certain important techniques of financial evaluation for landing decisions, viz., credit rating by ratio analysis and cash flow and fund flow analysis.
PROCESS FLOW Application form to be filled by customer
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Application form plus pre-approval documents to be collected by ICICI bank branch -RMs
Field verification (F.I.) both at Residence and Office to be done.
Documents verification - ITR/Bank Statement verifications by an independent agency CPA(not by the F.I. agency engaged)
Credit Approval Sheet to be signed by appropriate authority
Pre-disbursement documents to be collected/Disbursement Checklist to be prepared
Disbursement to be made (net of Service Charges and stamping)
Repayment Schedule to be sent to customer by branch
Bank has decided some of the profiles which they take as a caution profile for which no case is taken. This profile is as follows.
Caution Profiles Real Estate Agents/Property Dealers Builders/Contractors/Building Materials Suppliers
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NBFC (finance company) employees STD/PCO/Xerox Booth operators (as a standalone business) Insurance agents and Stock Brokers Self employed persons having office-cum-residence Cops/politician Film financier Collection agencies Plantation company Cable operators Journalist Advocate RTO agent Real estate agents Television artist Wine shop owner Civil contactor Public Prosecutors and High/Supreme Court lawyers
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Sr. No. 1. 2. 3. 4. 5. 6 7. 8. 9. Target Market Location Age Telephone at residence and/or Office Co-borrower/Joint Applicant Customer Interview Location Modes of Repayment Insurance Open market for SEP & SENP All approved locations and those which might be approved by the management in future except negative area. 25-60 years at the end of loan for self-employed Mandatory to establish contactability. Spouse and/or parents living in the same premises. Credit Managers to do customer interview. Parameters Details
Living within geo limits for the city and not in negative areas PDCs Loan Protector policy will be built up in the loan amount and the premium amount for the same will be funded.
CREDIT APPRAISAL BRIEF METHODOLOGY:
Contact Point Verification (CPV):-
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Under this the residence and the official address are being verified , the report tells if actually the person is staying at the given address or not also, it verifies the official address either of the organization he/she declares to work or the basis he/has her business The report can be negative or even positive or even referred. At times the file gets rejected due to negative report/ positive feedback on the report. Yes the banks have a separate unit which provides them with these services. These checks help to know that the addresses given are valid, contact numbers are genuine and whether the salaried person is actually Drawing the specified amount of salary or not.
Income Tax Return Verification (ITR): This is the check especially for the self employed applicants. Under this it is for the latest two years and no two ITRs are of the same date. They are originals and been actually filled and if any other source of income also.
Debt Coverage Parameter -- DSCR Meaning DSCR measures the number of times a companys earnings cover its total long-term debt, including interest and principal repayments in term debts, over a period of one year. Relevance This ratio is a good indicator of the long-term solvency of a company and its ability to service its debt obligations. Default risk covers both non-payments of interest as well as principal. This ratio is a measure of the degree of comfort that the borrower would have in repaying its long-term debt out of the funds generated by the company
Analysis of profit and loss account/balance sheet: The classification of current assets and current liabilities should be made as per the usually accepted approach of banks and guidelines indicated in this regard by Reserve bank may serve as an indication. It may be ascertained whether the levels of raw material, stock in process, finished goods and receivables are in conformity with the stipulated norms, of the bank.
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If unit, which has been, maintained the past inventory and receivables at levels lower than the accepted norms wants to raise the levels up to the norms, the reasons for it may be examined. If the norm for finished goods and receivables is a combined one, monthly, average for the purpose of arriving at the combined norms may be worked out by combining the levels of finished goods and receivables on the on hand and cost of sales and gross sales on the other hand.
FINANCIAL APPRAISAL Financial appraisal an important part of credit appraisal is financial appraisal, where the applicant's financial position is reviewed. Past repayment records including defaulting, late payments, delinquencies and bankruptcies, earnings potential including spouse's, any outstanding debt, assets, liabilities, and stability of your employment income comes under close scrutiny. Financial stability of the borrower and the co-borrower is an important factor not only for credit appraisal but also for increasing creditworthiness. A housing finance company or bank sets a fixed upper limit for the amount of money that can be sanctioned for a particular type of loan. Depending on the creditworthiness of a customer, the amount of money sanctioned to him can be increased to a certain degree.
Age is another factor that can also impact how much you will be sanctioned and speaks about your repayment capacity. Those earning high salaries and carrying a professional degree with a bright growth potential can definitely strike a great bargain. Age also matters when the tenure is quite long.
TECHNICAL APPRAISAL Apart from the financial appraisal, the technical appraisal is also an integral part of the credit appraisal process. Here the validity for approvals for construction from local government bodies is verified. Compliance with building laws, like restrictions on the number of floors or height of the building, is also verified, and the property to be financed is valuated and its condition is checked. Technical appraisal judges if the property to be financed is viable at all.
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LEGAL APPRAISAL finally, legal appraisal of the property takes place. It requires the borrower to submit sale deeds, Khata certificates, encumbrance certificate and other property related papers. Then these papers are handed on to lawyers who verify if the borrower is the absolute owner of the property that needs to be financed. Subsequently, validation of succession of title from earlier owners to the present one is done. In short, credit appraisal is a three-fold securitization process that includes financial, technical, and legal appraisal of the property. Credit appraisal is sometimes done by the housing finance company itself or outsourced to other firms for a fee. As a part of the credit appraisal process, the applicant may be required to visit the bank branch for a credit interview. If the customer is found to be financially sound with a good credit history, and his/her property financially viable and legally clear of hassles, then there could be no hiccups to his/her obtaining a sanction on his/her loan application.
DISBURSAL Once the file is being sanctioned, it waits for the customer to ask for the disbursal of money. Generally when it is a purchase case the file is asked for the disbursal in a short span of time only, the sale co-coordinators, or the sales executive inform the credit about it. The following is the procedure which starts now:LEGAL REPORT:As soon as it is being decided that the disbursal has to be the sales co-coordinators gives the request for the legal. Here the request depends on the basis of the case, for say purchase, construction. The legal report will inform about the legal papers that would be required both pre disbursement and post disbursement. As we know personal loans is unsecured loan we require the legal documents to be submitted. We have a Safe key Record at ICICI bank which is being captured at the time of disbursement and gives the complete details about the legal documents all which are received or due, according to the different cases. The pre disbursement documents should be received before the disbursement.
After the approval all the documents are checked again and the PDCs are collected
and checked by the disbursement officer that there should not be any problem .The
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signature should be matching with the original signature and there should not be any cutting in the PDCs. REPAYMENT OPTIONS 1st preference: PDCs from existing Bank account with 6 months history In case of PDC, bank collects the PDCs for 36 months and an undated cheque for the principal outstanding after 36 months. Repayment will be for principal + interest. INTREST RATE: At the time of disbursement the interest rate is decided which depends upon the scheme under which the customer applied for loan and the approved loan amount CHAPTER SIX COMPARISION WITH COMPETETOR
ATTRECTING CUSTOERS WHAT'S GREAT ABOUT A PERSONAL LOAN? i. You need not offer a security. ii. You need not offer a guarantor. iii. You can use it for whatever you want. The most striking feature of the personal loan is that your lender is not really bothered with what you need the money for. And, it is a far more convenient option compared to borrowing money from inquisitive friends and painful relatives, albeit at a cost. What they look at is your salary or earnings (if self-employed), and your capacity to service the loan based on that. Don't get too eager. Lenders are pretty stringent on this turf.
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Remember they are taking a complete call on you. So the entry barriers are considerably rigid. For starters, most lenders will scrutinize the company you work for. If they suspect it is a flyby-night operator, you may not get the money. If you pass this first round, you have to meet the criteria of a minimum number of years of employment (at least five years). So if you just trooped out of your college and are planning to zip on the Yamaha, wait! No finance happening here. Then comes the salary. Most players insist on a net (take home pay) salary of Rs 7,000 to Rs 8,000 just to qualify. The self-employed must have a minimum annual taxable income of Rs 60,000. In case you qualify in all the rounds and find the loan irresistible, take a look at the not-sogood aspects of this loan.
WHAT'S NOT GREAT ABOUT A PERSONAL LOAN? The interest rate. It is high. The rates start at 16% and go up to 22%. Here's why. Normally, when a loan is given, there is some security expected from you, the borrower. So you end up pledging your home, car, securities or gold. If you cannot pay back the loan, the lender can take any of the items you pledged. He is just protecting himself. A personal loan is different. It is not secured. There is no underlying security involved. You also do not need a guarantor. Should you default, your lender will be legally expected to repay the loan. So the lender is taking a big risk with you. To make up for this risk, he charges a higher interest.
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All the lender has to go by is the fact that you earn a particular amount. Therefore, you should be in a position to repay the loan. So he is taking a risk based purely on your ability to repay the loan and a perception of your personal circumstances. So you pay the price.
WHAT CUSTOMER LOOKS OUT FOR? Today, almost all the lending institutions offer personal loans -- from HDFC Bank, ICICI Bank, HSBC, ABN Amro, Citibank, Kotak Mahindra Bank, Standard Chartered and State Bank of India. But here is what you need to check:
MINIMUM AND MAXIMUM LOAN AMOUNT IDBI Bank offers it from Rs 50,000 to Rs 10 lakh (Rs 1 million). If you want it for less, try SBI (Rs 24,000) or HDFC Bank (Rs 25,000). UTI Bank too offers it for as low as Rs 25,000, but stops at Rs 500,000 (for the salaried and professionals), and Rs 300,000 (for the self-employed). ICICI Bank offers the widest range of Rs 20,000 to Rs 15 lakh (Rs 1.5 million). If the bank is not willing to give you the amount you need, try clubbing your spouse's income along with yours to avail of a higher amount. INTEREST RATE Look around. Compare rates. You may get a better deal at some places than at others. But don't get fooled by the interest rate that is presented. In some cases, it is calculated on a monthly reducing basis (the moment you pay your principal, the following month's interest rate is calculated on the reduced amount).
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In some cases, it is calculated on an annual basis (the same is done every year). Of course, the monthly reducing rate is a better option. The best way to find out is to tell the bank the amount of loan you want, for how long and get an Equated Monthly Installment. The lowest EMI is your best bet.
TYPES OF INTEREST RATE SBI offers a flexible interest rate. Other players too may offer it. But be very careful. If interest rates rise, you will pay dearly for this loan. Currently, SBI offers an interest rate of 16% per annum. But should you take the flexible interest rate, you could end up paying as much as 23% per annum if rates in the economy rise. REPAYMENT TENURE Most banks offer the loan from one to four years. Though some players like ICICI Bank go up to five years. And some do not even have the 12-month minimum time. IDBI Bank offers it for a maximum of four years for salaried individuals, but doctors and dentists can take it for five years. A proprietor, professional or business partner can only take it for three years. RELATIONSHIP You do not need to have any account with the bank to take a loan. But do check for exceptions.
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If you already have a relationship with the bank (account or another loan), ask if they have a preferred interest rate (which will be slightly lower than the normal one offered). Also, some banks tie up with corporate to offer a preferential rate. Check to see whether you fit the bill. And if you have a salary account with the bank, chances are higher that you will get a lower rate of interest.
PENALTIES Repayment is done every month via EMIs. You are given a fixed amount every month and have to submit post-dated cheques to that effect. If you are sure you get some money during the course of repayment to repay the loan, look for pre-payment penalties. If you do want to hurry up with paying your loan, check how much of a fee you will have to dish out every time you pre-pay. For instance, if you pre-pay more than 75% of the principal outstanding in one year, UTI Bank imposes a 1% penalty. ICICI Bank permits repaying the loan only after 180 days (around six months) at a penalty; no part prepayment is allowed. So either you pay back the entire amount or nothing. That's tough. HDFC Bank too permits prepayment after six months with a 4% penalty.
FEES Check for documentation, administration or processing fees. SBI charges a 1% processing fee with no other fees at all. ICICI Bank, 2%.
SWITCHING
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If you are servicing a loan at a high interest rate, most banks will be more than willing to take on the loan. Say you have a loan with IDBI Bank and want to switch to HSBC. If HSBC approves your application, they will pay the entire loan amount back to IDBI Bank along with the pre-payment fees (if any), and you repay the loan to HSBC. Banks may be willing to give a preferential rate of interest if you do so. On a closing note, personal loans are Nature's answer to life's little emergencies! So be sensible and keep them as a last resort. It always makes more sense to forgo certain luxuries than be seduced by debt! Use it for financing life's necessities and not luxuries!
MAJOR COMPETITORS OF THE ICICI BANK:-
HDFC BANK The HDFC bank is headquartered in mumbai. The bank at present has an enviable network of over 42 branches spread all over 215 cities across the country. All branches are linked on an online real-time basis. Customers in 90 locations are also serviced through Phone Banking. The Banks expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits And loan products. Being a clearing/ settlement bank to various leading stock exchanges, the bank has branches in the centers where the NSE?BSE have a strong and active member base.
The bank also has a network of over 1054 networked ATMs across these cities. Moreover, all domestic and international Visa/master card, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders can access HDFC banks ATM network.
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FEATURES AND BENEFITS Borrow up to Rs 10,00,000 for any purpose depending on your requirements. Flexible Repayment options, ranging from 12 to 48 months. Repay with easy EMIs. One of the lowest interest rates. Hassle free loans - No guarantor/security/collateral required. Speedy loan approval. Convenience of service at your doorstep. Customer privileges If you are an HDFC Bank account holder, we have special rates for you. If you are an existing Auto Loan customer with a clear repayment of 12 months or more from any of our approved financiers or us, you can get a hassle free personal loan (without income documentation). If you are an existing HDFC Bank Personal Loan customer with a clear repayment of 12 months or more, we can Top-Up your personal loan.
CREDIT REQUIREMENTS: DOCUMENTS AND ELIGIBILITY: Salaried n d i v i d u a l s Sel
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e m p l o y e d ( P r o f e s s i o n a l s ) Self Employed (Individuals)
Self Employed (Pvt Cos and Partnership Firms)
Salaried Individuals include Salaried Doctors, CAs, employees of select Public and Private limited companies, Government Sector employees including public sector undertakings and central, state and local bodies: Eligibility Criteria
Minimum age of Applicant: 21 years
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Maximum age of Applicant at loan maturity: 60 years Minimum employment: Minimum 2 years in employment and minimum 1 year in the current organization Minimum Net Monthly Income: Rs. 7,000 p.m (Rs. 6,000 in select cities)
Documents required:

Proof of Identity (Passport Copy/ Voters ID card/ Driving License) Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport copy/Trade license /Est./Sales Tax certificate) Bank Statements (latest 3 months bank statement / 6 months bank passbook) Latest salary slip or current dated salary certificate with latest Form 16
Self employed (Professionals) include self - employed Doctors, Chartered Accountants, Engineers, MBA Consultants, Architects, Company Secretaries. Eligibility Criteria

Minimum age of Applicant: 25 years Maximum age of Applicant at loan maturity: 65 years Years in business: Minimum 3 years in current business and 5 years total business experience Minimum Annual Income: Rs 60000 p.a. taxable income for Doctors and CAs Rs 100,000 p.a. taxable income for Engineers, MBA Consultants, Architects, CS.
Documents required:

Proof of Identity (Passport Copy/ Voters ID card/ Driving License). Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade license /Est./Sales Tax certificate). Bank Statements(latest 6 months bank statement /passbook) Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA Qualification proof of the highest professional degree
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Self Employed (Individuals) include self-employed - Sole proprietors, Partners & Directors in the Business of Manufacturing, Trading or Services. Eligibility Criteria

Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 65 years Years in business: 5 yrs continuous business experience Minimum Annual Income: Rs. 1,00,000 p.a. Available in select cities
Documents required:

Proof of Identity (Passport Copy/ Voters ID card/ Driving License) Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade license /Est./Sales Tax certificate) Bank Statements(latest 6 months bank statement /passbook) Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA Proof of continuation (Trade license /Establishment /Sales Tax certificate) Other Mandatory Documents(Sole Prop. Decl. Or Cert. Copy of Partnership Deed,Cert. Copy of MOA, AOA & Board resolution.)
ICICI BANK ICICI Bank is Indias second largest bank with total assets of about Rs.167659 crore at march31,2005 and profit after tax of Rs.2,005 crore for the year ended march 31,2005 (Rs.1637crore in fiscal 2004) ICICI Bank has a network of about 560 branches and extension counters and over 1,900ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate ant retails customers through a variety of delivery channels and
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through its specialized subsidiaries and affiliates in the areas of investments banking, life and non-life insurance, venture capital and assets management.ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverages on its domestic banking strengths to offer products internationally. ICICI Banks equity shares are listed in India on the stock Exchange, Mumbai and the National Stock Exchange of India limited and its American depository Receipts (ADRs) are listed on the New York Stock Exchange (NYSE ). As required by the stock exchanges, ICICI Bank has formulated a CODE OF BUSINESS CONDUCT and ETICS for its directors and employees.
FEATURES AND BENEFITS: Personal loans available for both salaried & self employed individuals No security, collaterals or guarantors required Loans ranging from Rs. 20,000 to Rs. 15 lakhs Easy repayment through flexible EMI options ranging from 12 - 60 months. Special Offer for ICICI Bank Customers: With the 'Loan on Phone' facility, it is possible to secure a loan even without having to visit your bank branch. If you've been an ICICI Bank customer for the past 6 months you might have a pre-approved loan offer waiting for you. All you need to do is speak to our phone banking officers (PBO) and quote your ICICI Bank relationship number to know about the pre approved offer.
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CREDIT REQUIREMENTS: Eligibility Terms for your Personal Loan Loan for Home Renovation. Marriage loan. A personal loan for almost anything you need. If you need money, then we have an instant personal loan for you. You can avail of an ICICI Bank Personal Loan , if you meet the following criteria: Criteria Age Net Salary Eligibilty Salaried 25 yrs. - 58 yrs. Net annual income Rs. 96,000 p.a Employees of Public cos. MNCs Or Government. Years in current job / profession Years in current residence 1 Year 1 Year Self - Employed 25 yrs. - 65 yrs. Net Profit after tax Rs. 60,000 p.a Doctors, MBA's, Engineers, Traders & Manufacturers 3 Years 1 Year
Ltd. cos. , Private Ltd. Architects, CA's,
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Documents required for your Personal Loan ICICI Bank provides you with personal finance to fulfill any of your desires with minimum documentation: Self Employed Yes
Documents ( Pre Sanction) Latest 3 months Bank Statement (where salary/income is credited) Latest 2 salary slips Last 2 years ITR with computation of income / Certified Financials Proof of Turnover (Latest Sales / Service tax returns) Proof of Continuity current job (Form 16 / Company appointment letter ) Proof of Continuity current profession (IT Returns / Certificate of business continuity issued by the bank) Proof of Identity (any one)Passport / Driving Licence / Voters ID / PAN card / Photo Credit Card / Employee ID card Proof of Residence (any one) Ration Card / Utility bill / LIC Policy Receipt Proof of Office (any one) Lease deed / Utility bill / Municipal Tax receipt / title deed Proof of Qualification Highest Degree (for Professionals / Govt employees STANDERD CHARTERD BANK:
Salaried Yes Yes
Yes Yes Yes
Yes
Yes
Yes
Yes
Yes Yes
Yes
Yes
With global headquarters at London, The Standard Chartered is clearly the words leading emerging markets bank with assets of over $90 billion, employing 30,000 people in over 500
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offices in more than 50 countries primarily in the Asia Pacific Region, South Asia , the Middle East, Africa and the Americas. The New Millennium brought with it two of the largest acquisitions in the history of the Bank the purchase of Grind Lays Bank from the ANZ Group for the consideration of $ 1.34 billion and the acquisition of the Chase Consumer Operation in Hong Kong for $1.32 billion. These acquisitions demonstrate Standard Chartereds firm commitment to the emerging markets, where we have a strong and established presence ans where we see our future growth. With exciting schemes, easy repayment options and competitive interest rates, an SCB Personal Loan is a hassle free experience!!! When the need comes knocking, there will be money to welcome it
> A variety of loans available to Salaried individuals with a minimum gross salary of Rs 11,000 Self Employed Individuals filing IT Returns of Rs 1,00,000 for 2 years Self Employed Professionals filing IT Returns of Rs 75,000 for 2 years > > > > > Loan Amount available from Rs 50,000 to Rs 15,00,000 Competitive Interest Rates No Securities, Collaterals and Guarantors required Repayment Options varying from ECS, PDCs or Account Debits If you are an existing SCB customer ?avail of special rates with less documentation
and priority processing > If you have a Personal Loan with SCB, Top it off with ease > Get a loan up to Rs 5,00,000 on the basis of your SCB Credit Card > Get your last EMI off - You will have the benefit of your last EMI waived to you provided your repayment is consistent through the period of the loan. > Avail of a special health insurance coverage from Royal Sundaram along with your SCB Personal Loan.
CREDIT REQUIREMENTS :
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Documentation* Salaried Identity Proof Address Proof Self Employed Businessmen Self Employed Professionals
Passport, Photo Pan card, Driving License, Votes ID Card, Photo Ration Card Passport, Telephone Bill, Ration Card, Electricity Bill, Driving License, Life/Medical Insurance policy, Rental Agreement, Apartment Allotment Letter Latest 1 month salary slip, Last 2 years IT Returns with computation of income/Certified Financials, Last six months bank account statement, Business Continuity proof 2 years IT Returns, Last six months bank account statement, Business Continuity proof
Financial
3 months bank employment Proof
Documents statement,
INDIABULLS: Indiabulls is Indias leading Financial Services and Real Estate Company with a pan India presence. Indiabulls offers ease convenience and reliability in all there products from securities to consumer finance. Mortgage to real estate development. INDIA BULLS FAST LOAN No matter where you work, or how much you earn, we offer you the shortest route to a loan with minimum paperwork and procedures. With Indiabulls Fast Loans, you can avail easy loans for a minimum of Rs.10,000 to a maximum amount of Rs.1,00,000.
FEATURES OF PERSONAL LOAN Flexible loan tenure of up to 4 years (i.e. 1 month to 48 months).

Loans available from a minimum of Rs.10,000 up to a maximum of Rs.100,000. Easy monthly repayment through equated monthly installments (EMI). Easy documentation and quick disbursal.
CREDIT REQUIREMENTS: DOCUMENTS REQUIRED
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2. Identity Proof 3. Income Proof 4. Bank statement Residence Proof

If Self - Owned house: Ownership Proof - Utility Bill / Sale agreement / Ration card / Passport. If Parental: Utility Bill + Relationship Proof. If Rented Accommodation: Registered Rent Agreement. If Company Allotted: Company Allotment Letter. Identity Proof Passport Voter Identity Card Driving License Photo credit Card Pan Card Employee ID card issued by Government / Reputed Public Ltd and Pvt Ltd Company Banker's Verification
Bank Statement
3 months bank statement from the date of application
Income proof

Salary Slip ( 2 months ) Salary Certificate from Government or Reputed Company. Form 16 Salary Credit to Bank account
YES BANK
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YES BANK, Indias new age private sector Bank, is an outcome of the professional commitment of its Founder, Rana Kapoor and his highly competent top management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to Emerging India. YES BANK is the only Greenfield license awarded by the RBI in the last 12 years, associated with the finest pedigree investors. YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. A key strength and differentiating feature of YES BANK is its knowledge driven approach to banking and an unprecedented customer experience for its retail banking and wealth management clients. YES BANK is built on a foundation of trust, strengthened by knowledge, backed by cuttingedge technology, governed by transparency and committed to responsible banking. The result is an unstinted commitment to growing your wealth CREDIT REQUIREMENTS: PERSONAL DOCUMENTS - FOR ALL APPLICANTS. 1. Identity proof (any one of the following ) PAN card ( compulsory if income is considered) Passport Election Commission card Employee ID. Not applicable for Pvt. Ltd. Co employees. Has to be Laminated Drivers License Bankers verification Birth certificate School leaving certificate LIC policy (Minimum 12 months in force) College certificate Date of birth as mentioned in the ITR Affidavit (only allowed for applicants whose income is not being considered)
laminated. 2. Signature Proof, if not available in above (any one of the following ) 3. Proof of age, if not available from above (any one of the following)
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4. Residence Proof, if not available from above (any one of the following) Ration card Electricity bill in applicants name LIC premium intimation (Policy to be minimum 12 months in force) Telephone bill in applicants name Copy of flat agreement if current residence is owned Copy of registered lease agreement if staying on rent
All the original documents confirming the identity, signature and residence need to be signed by a bank official who will certify the same on the copy of the said document. DOCUMENTS RELATED TO PARTNERSHIP FIRMS/COMPANIES For partnerships copy of the latest partnership deed, attested by Chartered Accountant and self attested by 1 partner + registration number as issued by the Registrar of Partnerships. For Companies, copy of Memorandum and Articles of Association, Copy of Certificate of Incorporation, List of Directors and List of Shareholders with Shareholding pattern. All documents to be certified by Chartered Accountant and attested by 1 director. Board Resolution for Companies, authorizing one director to sign on behalf of the company. The resolution will also authorize the company to borrow. This has to be signed by signatories as per the MOA norms. This has to be signed by the company secretary and 1 director or by at least 2 directors. For LAP/Overdraft cases, copy of the Shops and Establishments certificate is required
INCOME DOCUMENTS : SALARIED- RESIDENT INDIAN Last 2 months salary slips . Last 2 years Form 16 with ITRs. Last 6 months bank statement, showing at least last six salary credits. If any income is taken over and above the figure shown on salary slip, copy of appointment letter to be taken For consultants, copy of contract letter along with latest Form 16A to be taken All documents including all pages of the bank statement have to be self attested by the main applicant.
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INCOME DOCUMENTS : SELF EMPLOYED Latest 3 years IT returns with Profit and Loss account, Computation of Income and Balance Sheet (with all schedules). There should be at least a 6-month gap between filing of ITRs. All documents to be attested by Chartered Accountant. Last 6 months Bank statement, attested on each page by applicant.
LOAN DOCUMENTATION - COMMON FOR SALARIED AND SELF-EMPLOYED AT THE TIME OF APPLYING FOR THE LOAN Application form duly filled up and signed by all applicants. Processing fee cheque. In case the application is rejected, Rs.2000/- will be deducted towards processing charges, and balance will be refunded. In case of fraudulent application/wrong information given, there will be no refund. Personal Documents (Identity + Age + Signature Proof). Bank statements. Partnership Deed/Articles and MOA.
SOURCING DIFFERENCE: The DSA/DST team is working in all the banks and there working is also near about same, they all use to do telecalling and cold calling for getting the customer information. Most of the bank are having certain tie up and the sourcing teams also have some tie up and contacts in there own level. Companies like indiabulls and ICICI bank some time put canopy and information booth at certain places to analyze that place and provide information in that place and making there company reach at that place. ICICI bank and standard chartered bank is also making tie up with some clubs, malls and shopping complex for getting information about there customers. Yes bank is a new player in the field of personal loan they are trying to maintain a good DSA/DST team support to make the performance of the business more suitable. HDFC bank is also using these types of strategy apart from this they make contacts with the ca firms to get the information about there customers.
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CHAPTER SEVEN ANALYSIS & INTERPRETATION SWOT ANALYSIS Strengths
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National presence. Strong clientele and presence in other financial areas. Excellent technological infrastructure. A strong financial condition, ample financial resources to grow the business. Product innovation skills. Aggressive in reacting to situations. A powerful strategy supported by competitively valuable skills and expertise in key areas. Strong advertisement and promotion. Superior skills in chain management. Financially strong. High Return on Capital Employed (ROCE). Low NPAs.
Weaknesses No presence in smaller and rural cities. Gives more attention to product promotion rather than providing service.
Opportunities It can provide other financial services also with its nationwide infrastructure. Using the Internet and E-commerce technologies to dramatically cut costs and pursue new sales growth opportunities. Market openings to extend the companys brand name or reputation to new geographic areas. Expanding the companys product line to meet a broader range of customers needs. Falling trade barriers in attractive foreign markets. Market openings to extend the companys brand name or reputation to new geographical areas. It can increase more branches and ATMs. It can increase more projects.
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Threats The increasing competition in the retail banking could be a major threat. It has liberal approach in giving loans, not asking for certain important documents this could increase the defaulters in the bank & ultimately NPA. The new RBI policies could also cause a threat to it. The MNCs which provide banking facility could be a major threat for the bank. It can better control on systems and management. It has very strong market position.
Analysis . Banks are following norms for giving credit and still there is increased level of NPAs in banks. Some of the reasons for NPAs are as follows: ON THE PART OF BANKS: Incompetent job of project evaluation and appraisal of needs. Historical, political influence and abuse of directives and lending practices in major nationalized banks. Having lent the money, the bankers sit back without monitoring the real loans till they become NPAs. Banks are not able to help the borrowers who are struggling with high interest rate environment with timely offer of debt restructuring. ON PART OF THE BORROWERS: Willful default in payment of interest/installment
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Diversion of funds Disputes among partners/directors Inexperience of borrowers. Overtrading leading excess sales. Competition in market.
FINDINGS
Credit appraisal is done to check the commercial, financial & technical viability of the project proposed its funding pattern & further checks the primary or collateral security cover available for the recovery of such funds Credit is the core activity of the banks & important source of their earnings which go to pay interest to depositors, salaries to employees & dividend to shareholders Nisha Kiran (PGDM) 2010-12 RCMA
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PERSONAL LOAN Credit & risk go hand in hand In the business world risk arises out of: Deficiencies / lapses on the part of the management Uncertainties in the business environment Uncertainties in the industrial environment Weakness in the financial position Banks main function is to lend funds/ provide finance but it appears that norms are taken as guidelines not as a decision making. A bankers task is to indentify/assess the risk factors/parameters & manage/mitigate them on continuous basis. The Credit Appraisal process adopted by the bank takes into account all possible factors which go into appraising the risk associated with a loan. The assessment of financial risk involves appraisal of the financial strength of the borrower based on performance & financial indicators. The norms of the bank for providing loans are not stringent, i.e. even if a particular client is not having the favorable estimated and financial performance, based on its past record and future growth perspective, the loan is provided.
SUGGESTIONS It is a compulsory need for the banking industry and every bank to attract lots of money from the market. This require lots of pressure on the sourcing team of the individual branches of the bank to attract maximum customers in the bank and increase the business and bank should emphasize more pressure on sourcing teams and increase the employees on these team to maximize the business. Bank should diversify his product so that they can capture more high net worth individual.
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Baesl-2 is also going to implement one more rule in India which will allow the foreign bank to enter in India, This will going to increase a great competition in the Indian banking industry. as the foreign banks are much stronger banks in terms of capital as well as technology so they will like to acquire the small bank, so now it is needed to increase the size and the coverage of our bank in the India by opening maximum no of branches, providing the best services that we can provide, and maintaining a good image in the market and in between the customers. FOR SOURCING TEAM: Bank need to concentrate on the work of sourcing team and provide the maximum support to the team for performing a better task. By providing some ways and techniques of sourcing, these are some ways which can improve the sourcing of the bank: Tie up with different insurance company and brokerage houses for swapping of data of high net worth customers because we know that in India only 6% of the total population is doing trading in the stock exchange and maximum of them are or good net worth personality. Tie up with Real Estate Company for providing the loan finance from our bank. Good connections with CA/CS firms for providing the information about the high net worth peoples. Providing swipe machines for debit/credit card using customers in different malls and shopping complex because of this we can get the information about the peoples which are expending lots of amount in the shopping Canopy or information booths for providing information in important commercial area, complex, air port etc.
FOR CREDIT TEAM: Credit manager is a very important and responsible person of the bank, they have the authority of sanctioning or rejecting any loan application the decision of the credit manager can provide a good business or a NPA to the bank so they should have to work very properly for the sake of profitability of the organization. Rather then centralization of the credit appraisal team in a particular branch of the city it should be decentralize means dividing the city into sub regions and then making a credit appraisal team in a main branch of every region, this will help to decrease the
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work pressure in the particular staff and the team will become able to work in a good atmosphere.
The set up of the office should be in the way that the team is able to communicate
properly with each other when any problem is arising about the appraisal of the loan.
CHAPTER EIGHT
CONCLUSION
Finance management is the backbone of any organizations and hence yields a number of job options ranging from strategic financial planning to sales.
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PERSONAL LOAN Icici Bank loan policy contains various norms for sanction of different types of loans. Axis Bank norms for providing loans are flexible & it may differ from customer to customer. In all, the viability of the project from every aspect is analyzed, as well as type of customer, financial position, past records, experience, and also plays crucial role in increasing chances of getting loan approval.
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Project Report Icici Bank 2011

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PERSONAL LOAN

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Success and Failures:

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

CHAPTER TWO COMPANY PROFILE

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

ICICI Foundation for Inclusive Growth(CSR Initiative)

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Performance: In the Year 2006

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Strategic transformation continues

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Personal Loans are fast and easy to get.

Personal Loan Interest Rates

Personal Loans Interest Rates

Nisha Kiran (PGDM) 2010-12 RCMA

Duplicate No Objection Certificate/ No Due Certificate

Duplicate Repayment/Foreclosure statement

Personal Loans Application Process How to Get Personal Loan

process your loan within 3 working days.

Nisha Kiran (PGDM) 2010-12 RCMA

Net monthly salary of Filed IT returns of Income

Years in city Min 1 year Min 1 year

Nisha Kiran (PGDM) 2010-12 RCMA

Residence details Yes

statement for the last 2 statement for the last 2

Nisha Kiran (PGDM) 2010-12 RCMA

To obtain the loans there is no need to provide any security or collateral.

Nisha Kiran (PGDM) 2010-12 RCMA

CAR LOAN OD/CC

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

CHAPTER FOUR SOURCING

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Nisha Kiran (PGDM) 2010-12 RCMA

Ways to improve credit:

Nisha Kiran (PGDM) 2010-12 RCMA